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Tenancy Renewal Fee


St.Ives
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Serving a s. 21 notice does not prevent a Statutory Periodic Tenancy from arising. The law says that a SPT arises at the end of an AST unless there is a court order or "by surrender or other action of the tenant." So if the AST ends, and T remains in occupation, an SPT arises. Also it it something of a misnomer to describe the s. 21 notice as an eviction notice, though I know it is commonly known as one it does give rise to the false impression among many landlords and tenants that T must leave when the notice expires. That is not so.

As to the minimum length of an AST, it is true that theoretically these could be as little as one day, however from the landlord's point of view the minimum is now effectively 6 months for new tenancies: a landlord can no longer serve a s. 21 notice within the first four months of an AST.

Yeah she could also have gone to court and claimed heating and hot water does not work to delay proceedings, even after a court order had been made she could have still stayed until the bailiffs turned up... But thats being a bit of a dick and don't forget if you want to move somewhere else most letting agents ask your previous landlord for a reference so its worth ending things in an amicable manner as long as neither side try to take advantage or be a dick then this is quite easy.

The 6 months is probably just historical as before 1996 the minimum length was 6 months, this could also explain why a lot of BTL mortgages say a minimum of 6 months although you are correct the minimum does not legally have to be a minimum of 6 months but I think it probably is a good compromise for both sides to make sure thinks work while giving a minimum amount of tenure security. Section 21 cannot be served in the first 4 months of a tenancy which as it needs 2 months notice also gives weight to a minimum AST of 6 months, it makes the change sort of useless as even a section 21 that was served within the first 4 months could not be acted app-on until after the fixed period had expired.

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Well, you said that serving a s.21 notice is how landlords avoid a SPT arising: my point is that nothing a landlord does can prevent that from happening. Of course landlords and tenants should be reasonable about these things, but that applies to both sides. Landlords and lettings agents are notorious for (a) exploiting tenants' lack of knowledge of the law and (B) not knowing much of the law themselves, so there is no harm in both sides knowing what the situation is.

It is unclear to me why a landlord who is happy to let a property to a tenant for six months, would choose to go to all the trouble and expense of evicting that tenant, accepting a void period, then finding a new tenant, for the sake of an AST rather than an SPT. The words "nose," "spite" and "face" spring to mind.

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Well, you said that serving a s.21 notice is how landlords avoid a SPT arising: my point is that nothing a landlord does can prevent that from happening. Of course landlords and tenants should be reasonable about these things, but that applies to both sides. Landlords and lettings agents are notorious for (a) exploiting tenants' lack of knowledge of the law and ( B) not knowing much of the law themselves, so there is no harm in both sides knowing what the situation is.

It is unclear to me why a landlord who is happy to let a property to a tenant for six months, would choose to go to all the trouble and expense of evicting that tenant, accepting a void period, then finding a new tenant, for the sake of an AST rather than an SPT. The words "nose," "spite" and "face" spring to mind.

Technically yes but the section 21 would be live the day after the SPT arising. Totally agree that some landlords and letting agents exploit tenants, especially those that are most vulnerable with no other options often. There are some real scumbags out there but then after watching slum landlords, nightmare tenants there are some pretty scummy tenants out there although most of the landlords are asking for it being amateurs and not doing the proper checks, just wanting their money.

Well the only reason I can think of is to avoid having the property empty at an inconvenient time or for example if you are a final year student and you want to stay on for a few more months the landlord would miss the intake of new students... I think most cases it is the letting agents pushing amateur landlords with some ******** so they can fleece the tenants... Renewal fees should be banned or capped.

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I have mention before when we rented we were badgered to renew an AST by the EA at a cost of £££ and we ignored it as we wanted to leave at the end of the AST. The LL was pretty upset with the EA at the end result ... as no notice is required on that DAY as the contact ends ... the phone call to the EA was from their side ... something along the lines of about time you called to renew the tenancy etc etc .... the reply was that you can do the check out inventory in three days and pick up the keys on the DAY ie the day after. There was of course an immediate void and when the LL phoned and asked what the **** was going on I referred him to the s21 that was issued in the first week of the tenancy ... which was just 'the EA procedure' apparently but I of course 'understood' that the LL wanted possession on that DAY .... and duly complied.

Haha, yeah I dont blame you, it is silly to issue a section 21 regardless, thankfully now they cannot within the first 4 months so it stops this practice. Landlords should get more of a grip of their rentals rather than leaving it to greedy inept letting agents.

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  • 4 weeks later...
I manage some flats in London on behalf of my family, previously they were advertised and managed by several lettings agents but having seen the ridiculous fees that they charge for trivial work, the blatent lying and greed I decided I can do it better myself and save my family a signifant chunk of money.


It costs £22.50 to protect a deposit. £29.50 to use the NLA for tenant referencing and £10 to download a tenancy agreement from Rentify.


In one instance, we found the tenant ourselves (We knew him) but a lettings agent charged almost £700 in "commission" for doing nothing.


One lettings agent sent me an email saying that as a special offer they were offering to charge "only" 2% for contract renewal (on the flat in question it came to around £336) and I'm not sure how much they wanted to charge the tenant but it must be a few hundred pounds too.


One agent charged the tenant a higher amount, paid us less and kept the difference. This only came to light after I visited the tenant about an overdue rent payment.


The whole industry is a massive scam, I don't personally own any property and I live in rented accommodation myself, in London there is no choice you have to pay the exorbitant fees, in my case for a flat I rented myself in East London previously the tenant fees were £550!
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  • 11 months later...
12 minutes ago, St.Ives said:

The bastards have finally realised I have not paid the last two renewal fees and want £180 off be for two emails!

When you say renewal, do you mean sign another 12 month AST? If you go to a rolling contract with 1 month notice will cost you nothing.

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Because I have two young kids including one who has just started school and need some stability. 

I have found this site http://www.landlordlawblog.co.uk/2015/07/08/recent-changes-to-letting-agents-fees/ which suggests:

"There must not be any surcharges or hidden fees, and vague phrases such as ‘administration costs’ must not be used"

The fee I am being asked for is listed as an "Administration Fee"

 

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  • 4 weeks later...

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